January 28, 2026 – The cryptocurrency market is holding its breath as Bitcoin (BTC) struggles to reclaim the psychological $90,000 level, trading in a tight range around $88,300 this morning. With the Federal Reserve’s first policy decision of 2026 just hours away, investors are adopting a defensive stance, evidenced by significant outflows from spot Bitcoin ETFs. While digital assets stall, traditional safe havens are surging, with gold shattering records to trade above $5,200.

Markets on Edge: Bitcoin Under 90k as Fed Meeting Looms

Bitcoin price action has been characterized by indecision over the last 48 hours. After briefly testing $89,200 early Tuesday, the leading cryptocurrency faced renewed selling pressure, forcing it back down to the $88,000 support zone. Traders are hesitant to commit to large positions ahead of the Federal Open Market Committee (FOMC) announcement scheduled for 2:00 PM ET today.

The primary driver of this caution is the FOMC meeting crypto impact. Market consensus overwhelmingly expects the Fed to maintain its benchmark interest rate in the 3.50%–3.75% target range. However, the real volatility is expected to come from Chair Jerome Powell’s press conference. With recent inflation data showing mixed signals and President Trump’s recent comments favoring a weaker dollar, investors are desperate for clues on the central bank's trajectory for the remainder of 2026.

Spot Bitcoin ETF Outflows Signal Institutional Caution

Adding to the bearish sentiment are notable capital flights from institutional products. Data from yesterday’s session reveals a third consecutive day of spot Bitcoin ETF outflows. Major funds, including BlackRock’s IBIT, recorded net withdrawals as asset managers de-risked portfolios ahead of the rate decision. Ethereum ETFs (such as ETHA) haven't been spared either, mirroring the broader risk-off mood across the digital asset ecosystem.

Analysts suggest these outflows aren't necessarily a long-term bearish signal but rather a tactical retreat. "Institutions are simply moving to the sidelines," notes a morning report from Saxo Bank. "The liquidity is there, but no one wants to be caught on the wrong side of a hawkish surprise from the Fed."

Gold vs Bitcoin: The Divergence of 2026

One of the most striking narratives of crypto market news January 2026 is the decoupling of Bitcoin from gold. While often touted as "digital gold," Bitcoin is currently lagging behind its physical counterpart. Gold prices have staged a historic rally, hitting an all-time high of $5,260 per ounce today.

This divergence highlights a shift in the "debasement trade." Investors appear to be flocking to traditional commodities as a hedge against currency volatility following the Administration's comments on the US dollar, leaving crypto assets temporarily in the cold. When analyzing Bitcoin vs gold performance 2026, gold has returned over 8% year-to-date, while Bitcoin remains flat, consolidating its gains from late 2025.

However, crypto bulls remain undeterred. Historically, Bitcoin has often reacted violently after the initial digestion of Federal Reserve interest rates crypto news. If the Fed signals a willingness to cut rates later in Q1 citing economic cooling, the liquidity rotation back into risk assets could be swift and aggressive.

Bitcoin Price Forecast 2026: Technical Levels to Watch

Despite the immediate gloom, the broader Bitcoin price forecast 2026 remains constructive. Technical analysts point to a strong support cluster between $84,000 and $86,000. As long as BTC holds above these levels on a weekly closing basis, the long-term uptrend remains intact.

  • Immediate Resistance: $90,500 – A clean break here is needed to invalidate the short-term bearish structure.
  • Key Support: $84,200 – The "line in the sand" for bulls; losing this could open the door to a deeper correction toward $78,000.
  • Bull Case Target: $105,000 – If the FOMC delivers a dovish pivot, analysts project a rapid reclaiming of $90k followed by a push toward six figures by late February.

"We are seeing a classic consolidation pattern," says crypto analyst Roman Onegin. "The market is compressing energy. Once the Fed event risk is cleared, we expect volatility to expand significantly, likely resolving to the upside given the accumulation data we see from whales below $88k."

What to Watch for the Rest of January

As we close out the first month of the year, the crypto market news January 2026 cycle is dominated by macroeconomics. Beyond the Fed, traders are keeping a close eye on the tech sector's earnings, which have shown a high correlation with crypto assets recently. If tech stocks stumble, Bitcoin could face further headwinds.

For now, patience is the watchword. The hours following the Fed decision will likely set the trend for February. Whether Bitcoin can decouple from traditional risk assets and catch up to gold’s momentous run remains the multi-billion dollar question for traders worldwide.